Paul Rollinson's Kinross Gold Corp. (K) jumped 72 cents to $12.28 on 6.53 million shares on word of a preliminary economic assessment of the Great Bear gold project near Red Lake in Northwestern Ontario.
The study is based on 30.3 million tonnes measured and indicated at 2.81 grams of gold per tonne and 25.5 million tonnes inferred at 4.74 grams per tonne, a total of 6.62 million ounces of gold across three zones -- LP, Hinge and Limb.
The plan calls for a 10,000-tonne-per-day mining and milling operation capable of averaging 431,000 ounces of gold per year over a projected 12-year life, with nearly 520,000 ounces per year recovered during the first eight years.
The dream sheet lays out a "strong combination of high-margin production and modest capital requirements," says Mr. Rollinson, CEO, although he might propose a less encouraging adjective to the cost once he starts hunting the $1.43-billion (U.S.) needed to get the mine running.